Fitch Affirms Ratings on Chase Issuance Trust

NEW YORK--(BUSINESS WIRE)--Fitch Ratings has affirmed the ratings assigned to the Chase Issuance
Trust (CHAIT) and has revised the outlooks on the subordinate notes as
follows:

--2006-2A at 'AAAsf'; Outlook Stable;

--2007-2A at 'AAAsf'; Outlook Stable;

--2007-3A at 'AAAsf'; Outlook Stable;

--2007-1B at 'Asf', Outlook to Positive from Stable;

--2007-1C at 'BBBsf', Outlook to Positive from Stable;

--2007-5A at 'AAAsf'; Outlook Stable;

--2007-8A at 'AAAsf'; Outlook Stable;

--2007-12A at 'AAAsf'; Outlook Stable;

--2008-2A at 'AAAsf'; Outlook Stable;

--2008-8A at 'AAAsf'; Outlook Stable;

--2012-A2 at 'AAAsf'; Outlook Stable;

--2012-A3 at 'AAAsf'; Outlook Stable;

--2012-A4 at 'AAAsf'; Outlook Stable;

--2012-A5 at 'AAAsf'; Outlook Stable;

--2012-A6 at 'AAAsf'; Outlook Stable;

--2012-A7 at 'AAAsf'; Outlook Stable;

--2012-A8 at 'AAAsf'; Outlook Stable;

--2012-A9 at 'AAAsf'; Outlook Stable;

--2012-A10 at 'AAAsf'; Outlook Stable;

--2013-A1 at 'AAAsf'; Outlook Stable;

--2013-A2 at 'AAAsf'; Outlook Stable;

--2013-A3 at 'AAAsf'; Outlook Stable;

--2013-A4 at 'AAAsf'; Outlook Stable;

--2013-A5 at 'AAAsf'; Outlook Stable;

--2013-A6 at 'AAAsf'; Outlook Stable;

--2013-A7 at 'AAAsf'; Outlook Stable;

--2013-A8 at 'AAAsf'; Outlook Stable;

--2013-A9 at 'AAAsf'; Outlook Stable;

--2014-A1 at 'AAAsf'; Outlook Stable;

--2014-A2 at 'AAAsf'; Outlook Stable;

--2014-A3 at 'AAAsf'; Outlook Stable;

--2014-A4 at 'AAAsf'; Outlook Stable;

--2014-5A at 'AAAsf'; Outlook Stable;

--2014-6A at 'AAAsf'; Outlook Stable.

KEY RATING DRIVERS

60+ Day delinquencies have steadily declined each month since the peak
of 3.81% during the January 2010 distribution period. Currently, 60+ day
delinquencies are at 0.94% for the July 2014 distribution period.

One-month excess spread is at a near historic level in the July 2014
reporting period of 13.49%.

Monthly payment rate (MPR), a measure of how quickly consumers are
paying off their credit card debts, has improved over the past year and
is trending with the Fitch index. Currently, Fitch Index Monthly Payment
Rate is at 29.57% for the July 2014 distribution period.

Fitch runs cash flow breakeven analysis by applying stress scenarios to
three and 12-month averages performances to test that under the stressed
conditions, the transaction can withstand a level of losses commensurate
with the risk associated to a rating level with the available credit
enhancement. The variables that Fitch stresses are the gross yield, MPR,
gross charge-off, and purchase rates. For further information, please
review the U.S. Credit Card ABS Issuance updates published on a monthly
basis.

Fitch's analysis included a comparison of observed performance trends
over the past few months to Fitch's base case expectations for each
outstanding rating category. As part of its ongoing surveillance
efforts, Fitch will continue to monitor the performance of these trusts.

RATING SENSITIVITIES

Fitch models three different scenarios when evaluating the rating
sensitivity compared to expected performance for credit card
asset-backed securities transactions: 1) increased defaults; 2) a
reduction in purchase rate, and 3) a combination stress of higher
defaults and lower MPR.

Increasing defaults alone has the least impact on rating migration even
in the most severe scenario of a 75% increase in defaults. The rating
sensitivity to a reduction in purchase rate is slightly more pronounced
with a moderate stress of a 75% reduction, leading to a possible
downgrade on the class A notes. The harshest scenario assumes both
stresses to defaults and MPR to occur simultaneously. The ratings would
only be downgraded under the severe stress of a 75% increase in defaults
and 35% reduction in MPR. To date, the transactions have exhibited
strong performance with all performance metrics within Fitch's initial
expectations. For further discussion of sensitivity analysis, please see
the new issue report related to one of the transactions listed above.

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RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY
CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH
WEBSITE.